3 Ways to Improve Collections

As all business owners know that getting paid can be tricky. You have heard it before… “The check is in the mail,” “I’ll call you later with credit card information,” or “I’ll just give you a check when I see you next.” Sometimes it works out, and sometimes it doesn’t. In any case, it’s a headache. 

The key to effective collections is having a process in place, and while that process may vary from business to business, some universal standards apply. 

Improve Collections by Remembering BMP

  • Blame – Blame the bookkeeper (but no names please)! When an account is past due you will likely need to prompt the client/customer to pay the balanced owed. A gentle reminder that throws someone else (namely me) under the bus is a non-confrontational way to bring the topic up. Tell them your bookkeeper has been hassling you to get things in order, and you need to "get him off your back."
  • Monthly – Reconcile statements on a monthly basis. If you are managing account balances for clients, issue reports to them monthly.
  • Priority – Starting is often the hardest part when it comes to getting your books in order. When collecting past due balances, give priority to the accounts that are furthest in arrears.

Small changes can make a big difference when it comes to managing company money. Email David@DEKEbookkeeping.com to learn more.